By Scott Kanowsky
Investing.com -- Helsinki-listed shares in Nokia (HE:NOKIA) moved toward the top of the pan-European STOXX 600 on Thursday after the Finnish telecom group reported better than expected second-quarter operating profit and confirmed its full-year sales outlook.
Comparable operating income for the period rose by 5% versus the same period last year to €714 million, well above expectations, boosted by solid demand for 5G equipment that helped outweigh an increase in costs related to exchange rate effects and investment expenses.
Second quarter net sales also moved higher by 11% - and 3% on a constant currency basis - to €5.87 billion, as positive foreign exchange rate changes offset the impact from COVID lockdowns in China and wider component shortages. The uptick beat analyst estimates of €5.61 billion.
The Espoo-headquartered company backed its guidance for annual net sales at between €23.5 billion and €24.7 billion. Nokia's forecast for full-year comparable profit margin also remained unchanged at between 11% to 13.5%.
Nokia added that headwinds still remain from constraints on key semiconductor supplies and currency movements in some emerging markets, but are tempered by a projected increase in returns from investment into private wireless technology over the medium term.
"I am confident we have the right strategy in place to navigate these challenges along with support from structural technology adoption trends in 5G and fiber," said Nokia president and chief executive officer Pekka Lundmark in a statement.
He added that Nokia also sees pressures from the chip supply crunch - which has hampered performance at businesses across multiple sectors - showing "signs of improvement".